Spot gold edged slightly lower in early trading today, but later successfully broke through the resistance level of $4300, shaking the dominance of the short-term corrective downtrend. Nevertheless, gold is still moving along the trendline supporting the recent downward move and remains below the 50-period exponential moving average (EMA50). This moving average acts as dynamic resistance, limiting the scope of gold’s corrective rebound and maintaining peRSIstent downside pressure.

On the 4-hour chart, the Stochastic Oscillator is climbing repeatedly, meaning downside pressure in the spot gold market is being continuously absorbed. The probability of further downside correction for gold in the near term has been greatly reduced, and signals from other technical indicators validate our market outlook.

Expected support level: $4300.00, resistance level: $4400.00

Trading strategy: Mildly bullish

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